LOLC - Rs. 1.3 b PBT

LOLC Group during the first quarter this year recorded a PBT of Rs. 1.35 billion, a 45% increase over the last year's Rs. 934 million, a reflection of the strong profitability which grew by 23% compared with June 2013.

External effects such as significant reduction in interest rates contributed positively to the reduction in borrowing costs which saw an overall drop of 20% compared with last year and this is despite the growth in savings and deposits increasing the overall borrowings of the Group.

The increase in the borrowings base reflects the growth strategy fuelling higher executions, strengthening the financial sector lending portfolio. A reduction in lending interest rates was also seen.

However, the higher quantum of lending resulted in the interest income from the Group's lending business moving up 7% compared with the quarter ended June last year.

The financial services sector shows tremendous performance in the lower interest rate regime along with better collection results coming from all three financial services companies of the Group.

The contribution to profits (PBT) from this sector increased from Rs. 672 million to 1.14 billion an increase of 71%.

LOLC's flagship finance company, Lanka ORIX Finance PLC (LOFC) posted strong profits for the quarter, with Rs. 325 million as PBTan increase of 222% over June of the previous year. This reflects the strong collections with lower interest costs.